For Advisers and Investors Alike, Volatility is Top Concern

Protecting assets and saving for retirement are also key goals.

For registered investment advisers (RIAs), fee-based advisers and investors, protecting assets and saving for retirement are the top concerns over the next 12 months, according to Jefferson National’s second annual Advisor Authority study.

Just over three quarters (76%) of advisers and 63% of investors said they expect volatility to rise over the next 12 months. Advisers are more likely to review their investing strategy in response; 62% of advisers plan to do so, compared to 41% of investors. Of those who plan to revise their strategy, 75% of advisers and 72% of investors plan to “invest more tactically,” while 69% of both advisers and investors plan to invest more conservatively.

Asked about their plans to attract the next generation of investors, 36% of advisers plan to work more closely with a client’s family and children, 36% plan to increase their use of social media, 26% plan to use more mobile technology, and 24% plan to offer personalized, holistic advice.

Seventy-seven percent of advisers will not make an investment unless they are confident they can effectively communicate it to their clients. When choosing an adviser, investors’ top three priorities are experience (44%), personalized/holistic advice (26%) and a fiduciary standard (24%). Although investors are expecting more volatility in the year ahead, those who work with an adviser are far more optimistic than those who do not (47% versus 35%).

“Increasing political and economic uncertainty, both domestically and globally, creates opportunities for expert advisers to add value and underscores the importance of working with an unbiased fee-based or fee-only adviser to ensure that clients will be better off,” says Mitchell Caplan, CEO of Jefferson National.

Harris Poll conducted the survey of 683 financial advisers and 733 investors for Jefferson National in March.